July 13 news
July 13, the Chinese epichlorohydrin market showed a significant upward trend. According to the monitoring system, as of July 13, the benchmark price of epichlorohydrin was 8,600.00 CNY/ton, an increase of 10.26% compared to the beginning of the month.
On the raw material side, the strong and stable prices of propylene are providing crucial support and serving as the core driver behind this round of propylene oxide price increases. According to monitoring systems, as of July 13, the benchmark price of propylene stood at 8,011.00 CNY per ton, up 8.10% from the beginning of the month (7,411.00 CNY per ton).
Supply side: On the 13th, some Chinese propylene oxide plants continued to operate at reduced loads or were shut down. Plants such as Zhenhai Phase 2, Guoen, Yida, Qixiang, and Ruiheng were in a shutdown state, while Sanyue and Binhua were operating at reduced loads. As a result, on July 13, China's propylene oxide capacity utilization rate dropped to 60.17%, a decline from 62.04% on July 10. Although some operational factories experienced slight inventory accumulation, most enterprises still had relatively low and manageable inventory levels, with limited pressure on factory shipments. However, after a significant market surge over the weekend, there are signs that the overall shipping atmosphere has already started to weaken.
On the demand side, the downstream polyether market for propylene oxide has been passively following price increases. In East China, the quoted range for soft-film polyethers is 8,600–8,800 CNY per ton; in Shandong, it’s also 8,600–8,800 CNY per ton. Similarly, rigid-film polyethers have risen by 400–500 CNY per ton. However, downstream enterprises show significantly lower acceptance of these higher-priced raw materials, and they have gradually reduced their purchase volumes. Inquiries have become lukewarm, and actual transactions remain sluggish.
Comprehensive Forecast: Epoxy Propane analysts believe that the strong and stable prices of propylene—the raw material—continue to provide solid support. Meanwhile, ongoing plant maintenance activities on the supply side have reduced production capacity, leaving factory inventories relatively low, which in turn provides bottom-floor support for epoxy propane prices. However, downstream users are not very receptive to high raw material prices, leading to a slower procurement pace and a lukewarm inquiry atmosphere. Therefore, it is predicted that the epoxy propane market will likely experience volatile and consolidating trading conditions in the short term. Further attention should be paid to trends in propylene prices on the raw material side, as well as developments related to plant start-ups and shutdowns and the progress of new orders from downstream customers.
